Reverse Mortgage to draw Income

Found this nice tidbit of Reverse Mortgage Information on another journal/blog site.

Reverse mortgages are a great way to draw income out of your biggest asset, but caution is needed.

The warnings are very real. This is a great tool if used wisely.

You should put aside the amount that you pull out and use the growth from that amount to better your life, but DO NOT TOUCH THE PRINCIPLE UNLESS IT IS ABSOLULTELY NECESSARY.

For example if you pull out $80,000 put that aside in a very safe annuity or some kind of investment that your principal is not at risk but offers guaranteed growth.

The key is to use the growth on that money to your benefit.

Now, that money will accrue interest but the growth in the value of the home should offset some of that. If you take a little bit of the growth to add a small bit of life insurance that should take care of leaving enough money to pay off the mortgage in the future.

That is the smart way to do this.

If you just take the principle and spend, then they are dangerous and you will leave nothing behind for your family.

The government recommends people utilize this kind of strategy to purchase long term care insurance. With the cost of nursing care at around 6 grand per month, there is not a smarter investment people can make to protect their nest eggs.

I have also seen people utilize that kind of strategy to pay property taxes so they can affort to keep their homes.

The reverse mortgage is a great tool, just do your homework and protect the money you borrow.

Call 1-888-973-8377 with any reverse mortgage questions.